GOVERNMENT HAS BEEN accused of “raking in” additional VAT receipts while motorists are being hit with sky-high petrol and diesel prices. 

Sinn Féin’s Pearse Doherty said people are being “hammered” with the rising cost of fuel, pointing out that there has been a sharp price increase at the forecourts, with one litre of diesel now costing €2.20 in some parts of the country. 

He said the public is watching the prices rapidly rise, but are not seeing the government take action. 

Doherty asked Defence Minister Helen McEntee if the government will move to cut excise further, given that petrol and diesel prices are now over the €2 mark. 

The temporary reductions to fuel excise, which were extended in June and originally due to end in September, will remain in place until 31 October 2026. 

From 1 November, excise rates will be restored on a phased basis rather than in a single increase, with the restoration taking place over four stages and concluding at the end of February 2027.

The cuts were introduced in response to protests against high fuel prices in April that included the blockading of an oil refinery in Cork.

Following the protests, the government increased temporary fuel excise cuts to 32c on a litre of diesel and 27c for petrol. 

Excise cuts 

However, pressure is now mounting on the government to do more, with the excise cuts now being swallowed up by rising oil prices.  

Responding, McEntee said she agreed with Doherty that “people need action not words”. She said the government has already stepped in with €1.4 billion in provided supports already. 

She said reductions on fuel were extended to October to give certainty to people. 

McEntee said the budget will be held on 6 October, stating that the government will move to provide people with support in the short-term and the long-term.

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“You can be assured of that,” she said. 

Doherty also spoke about his party’s proposed legislation to remove all carbon tax on home heating oil, stating that the cost for 1,000 litres now costs hundreds of Euros. 

People “can’t take any more of this”, he said, urging the government to accept his bill.

McEntee said the Taoiseach and Tánaiste have already said they will do something to assist people who rely on home heating oil, with details to be announced on budget day.